Control Your Trucking Costs In 2018 As the owner of a trucking company, you are part of one of the largest industries in the United States. More than 3 million trucks, 3 million drivers, and 1 million companies move 9.2 billion tons of freight on average annually. In fact, the American trucking Association regards the industry as the “lifeblood of the US economy.” However, this economic pillar is beginning to feel the weight of political and financial issues. Small trucking companies often have the most hurdles to overcome, as they are constantly hindered by lower resources, small budgets, and the threat of being undermined by larger companies. This begs the question of how to improve profit margins in the tumultuous political and financial …show more content…
Analysing your fixed expenses (such as insurance, equipment, rent, taxes, permits) and variable expenses (tires, fuel, stationery, lodging, and meals) will help you locate areas in your business that need to be improved. Conducting a profit and loss analysis monthly or even weekly helps you reign in any stray numbers. Hiring a local accountant or using inexpensive accounting software can often help you budget your expenses accordingly. Core Competency Trucking companies of any size need to remember to concentrate on what they do best and outsource the rest. While subcontracting can cost money in the short term, the return on investments (ROI) reduce stress, enhance efficiency, and make day-to-day operations run smoother. On the other side of the coin, any trucking company owner worth their salt knows when not to outsource. Generally, tasks that require direct contact with customers should be conducted in house (like lead generation or customer satisfaction analysis). This allows you to not only understand how your customers perceive your company, but will also better allow you to control your brand